3 Important Tips for Hiring the Right Fractional CFO for Your Small Business
As your small business matures, so does its needs. While in the beginning you may have been able to handle all the functions of your business operations with a smaller, unspecialized staff, you’re quickly coming to the conclusion that what you’re currently working with is no longer meeting the needs of your growth driven operation.
One of the most important positions in your small business is that of a CFO. At the end of the day, it’s the CFO who makes sure you’re using financial strategies for growth and profitability. Running a small business without a CFO is doable, but it can be difficult. The responsibilities handled by a CFO are not ones that you want to overlook or delegate to the wrong person.
You might be thinking about bringing in a dedicated CFO, but the sticker shock of their salary is causing some hesitation, or maybe you’re wondering if you need someone in the position full time when your business is still relatively small. Hiring a fractional CFO is a solution to both these concerns, but choosing the right one is an important decision. Here are three things to consider before you decide.
Understand What an Outsourced CFO Does
The first thing to do is make sure you understand what a fractional, or outsourced, CFO does and what their role in your business will be. A fractional CFO is someone who performs financial officer responsibilities for your business, on a part time basis, commonly from a remote location with occasional onsite visits. They’re there to work with you and your management team, point you in the direction of financial success and take care of the practicalities that your current team doesn’t have the time or professional skill set to handle. Cash management, capital needs assessment, margin analysis, pricing, and forecasting are just a few areas of interest CFOs can help with.
Know What You’re Looking For
Don’t assume that because an outsourced CFO isn’t working in the office next to yours that chemistry isn’t important. You’re putting your financial future into this person’s hands and having a level of respect and trust in them is non-negotiable.
Don’t hesitate to ask any potential fractional CFO about their practices, and how they’ll approach the unique financial aspects of your business. You shouldn’t settle for a one-size-fits-all approach, but instead look for someone who can pinpoint how your business is different and be able to come to you with solutions that fit.
Know Where to Go
The financial health and future of your business is far too important to trust in the hands of just anyone. While some CFOs will work independently, you will often find the most experienced, highly-qualified candidates working alongside other professionals in a company that provide a range of business services. Your fractional CFO should also specialize in working with small business clients.
We’re dedicated to providing you with the expert CFO services your small business needs. The integrity of our team affects our reputation and yours, and there’s nothing that we’ll let tarnish that. Contact Steiner Business Solutions today to learn more about our expert CFO consulting services.